I was having a conversation with other real estate investors about the dreadful tactic known as “co-wholesaling”, “joint venturing” or “daisy chaining” in which one investor will have a property for sale, and another “wholesaler” will advertise that property at a higher price as if they were the seller. Regardless of what you call it, it is illegal under every state’s real estate licensure laws.
I asked myself why individuals would want to do something like this, and it came to me that it may be because they are afraid to deal with real sellers. If you are going to be a real estate investor, you will have to talk to people, particularly sellers. You are going to have to ask them the important questions, such as why do you want to sell such a nice house as this? When do you want to complete the sale of this house? What do you plan to do with the money you receive for this house? Those who lack the courage to ask those questions of a seller find it a whole lot easier to sit in front of a computer in their fuzzy slippers and pajamas and surf the internet to see what houses others already have under contract so they can parachute into the deal and try to parasite onto the transaction.
If you have the passion, need and desire to become a successful real estate investor, but you are unsure of your skills in talking to people, then you need to work on improving those skills. Read Dale Carnegie’s famous book How to Win Friends and Influence People, or books by the late Zig Ziglar on how to market yourself and your product. You don’t need to have a super-aggressive, gregarious, outgoing, life-of-the-party personality to become a successful real estate investor. Many investors I know are reserved introverts who find investing and deal-origination strategies that appeal to their strengths. They still understand, however, that there are times when they must talk to strangers and ask those questions. They have to get over those uncomfortable moments to discover and then solve the seller’s uncomfortable circumstances.
What are you currently doing to improve your people skills? Are you reading books and implementing the things those books are teaching? I certainly hope so.